What is the revenue maximizing tax rate?

Discussion in 'Economics' started by jagadish, Oct 2, 2010.

  1. wave

    wave

    Anything above 25% starts impacting revenue and potentially causing equilibrium.

    25% is the magic number. Run simulations and you will see.
     
    #31     Oct 4, 2010
  2. Good point. Here in California state income taxes and sales taxes have doubled since the 1950s, and gasoline taxes have quadrupled.


     
    #32     Oct 4, 2010